Calculating actual weightings

When you do a full update of the vendor ratings in the Update Vendor Rating (tdpur8850m000) session, the calculation of actual weightings is the first stage in the calculate/update vendor rating procedure.

When you rescale the criteria weightings in the Normalize Criteria Weightings (tdpur8852m000) session, you can choose to:

  • Fully update the weightings
  • Recalculate the weighting for one subjective criterion

After the rescale, the weightings represent a true percentage. So, weightings are not changed relative to other weightings.

Full update

When you recalculate all criteria weightings, the calculation is as follows:

  1. Summing the weightings
    The weightings for all the objective criteria and the level 0 subjective criteria are summed.
  2. Recalculating objective and level zero subjective criteria

    The following recalculation takes place for the objective criteria and level zero subjective criteria:

    New weighting = (existing weighting/objective weightings and level zero subjective weightings) * 100
  3. Calculating subjective weightings with level one or higher
    The subjective weightings with level one or higher are calculated in the same way as the recalculation of one criterion, which is stated below.
Recalculation for one subjective criterion

When you recalculate the weightings for one criterion, the calculation is as follows:

New weighting = (current weighting/sum of all weightings) * 100

If the selected subjective criterion has level one or higher, the following applies:

Sum of all weightings = sum of all the weightings whose parent is the selected subjective criterion.
Example

The existing objective weightings and subjective weightings are:

Objective criteriaWeighting
Delivery time60
Quality60
Order confirmation10

 

LevelSubjective criteriaWeighting
0Customer service40
1Call handling14
1Product knowledge6
0Delivery service30
1Flexibility25
1Paperwork quality15

 

Full update

  1. Sum of all objective weightings and level 0 subjective weightings = 60 + 60 + 10 + 40 + 30 = 200.

  2. The new weightings are:

    • Delivery time
      60/200 * 100 = 30%
    • Quality
      60/200 * 100 = 30%
    • Order confirmation
      10/200 * 100 = 5%
    • Customer service
      40/200 * 100 = 20%
    • Delivery service
      30/200 * 100 = 15%
  3. The subjective weightings of level one or higher are recalculated for customer service as stated below.

Recalculation for one criterion

Normalization of, for example, the weightings for customer service:

  • Total of weightings = 14 + 6 = 20.
  • New call handling weighting = (14/20) * 100 = 70%.
  • New product knowledge weighting = (6/20) * 100 = 30%.

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